INSIDE BOB BASHARA'S SECRET DUNGEON. AND THE CITY IN CRISIS. TONIGHT WE HAVE THE EMERGENCY MANAGER'S REPORT ON DETROIT'S FINANCES, AND BIG CUTS ARE COMING. DETROIT EMERGENCY MANAGER KEVIN ORE DELIVERS HIS REPORT TO THE GOVERNOR TOMORROW. WE HAVE AN ADVANCED COPY TONIGHT AND IT OUTLINES A DEEPER FINANCIAL CRISIS THAN EXPECTED, WITH THE NEED FOR SOME VERY SERIOUS CUTS. BISI ONILE-ERE HAS BEEN PORING OVER THE REPORT AND TALKING TO EXPERTS TONIGHT. GIVE US A GLIMPSE OF WHAT THE GOVERNOR IS GOING TO HEAR TOMORROW. WELL, STEVE, I CAN TELL YOU THAT THIS REPORT COMES 45 DAYS AFTER THE E.M. TOOK OFFICE AND IT DOES NOT PAINT A PRETTY PICTURE. I SPOKE WITH AN EMERGENCY BANKRUPTCY EXPERT TODAY AND HE TELLS ME THAT THIS CRISIS HAS BEEN 40 TO 50 YEARS IN THE MAKING. DETROIT'S FINANCIAL CRISIS IS FAR MORE GRAVE THAN PREVIOUSLY PROJECTED. HOURS BEFORE EMERGENCY MANAGER KEVIN ORE IS TO TURN IN HIS FIRST REPORT TO GOVERNOR SNYDER, WE GET A FIRSTHAND LOOK AT THE E.M.'S ASSESSMENT SO FAR. AND IT DOES NOT LOOK GOOD. DETROIT'S GENERAL FUND DEFICIT NOW REACHES NEARLY $400 MILLION, WITH A NEGATIVE CASH FLOW NEARING $200 MILLION AND NO ROOM TO BORROW. THE CITY COULD RUN OUT OF MONEY WITHIN WEEKS. BANKRUPTCY EXPERT DOUG BERNSTEIN. WHAT IT TELLS ME IS THE HOLE IS VERY DEEP, IT WILL TAKE A LONG TIME TO GET OUT OF, AND THERE WILL BE A LOT OF PAIN. HIGHLIGHTED IN THE 40-PAGE ANALYSIS, ONE OF THE CITY'S BIGGEST BURDENS, PENSIONS. DETROIT'S TOTAL OBLIGATION TO RETIREES STANDS AT OVER $5 BILLION. AS PART OF RESTRUCTURING, THE E.M. WILL LOOK TO REDUCE OR ELIMINATE CERTAIN HEALTHCARE COSTS FOR BOTH ACTIVE AND RETIRED EMPLOYEES. UNFORTUNATELY, THOSE WHO WORKED UNDER THE ASSUMPTION THAT THEY'D HAVE THIS PENSION AT THE END OF THE DAY AREN'T GOING TO SEE 100% OF WHAT THEY WORKED FOR. COULD THIS REPORT LEAD DETROIT DOWN THE ROAD TOWARD MUNICIPAL BANKRUPTCY? TO SOME, IT SURE LOOKS THAT WAY. OH, I THINK IT CONFIRMS IT. IT'S SOMETHING THAT I WOULD HAVE FIGURED MIGHT BE INEVITABLE, BECAUSE IN ORDER TO AVOID BANKRUPTCY, YOU'RE GOING TO NEED A LOT OF COMPROMISE. MANY OF THE COLLECTIVE BARGAINING UNITS ARE GOING TO HAVE TO AGREE TO A TREATMENT LESS THAN WHAT THEY HAD ORIGINALLY BARGAINED FOR AND REALLY, I DON'T SEE THAT HAPPENING. AND THE REPORT ALSO CALLS FOR PRIVATIZING SOME SERVICES LIKE THE PUBLIC LIGHTING DEPARTMENT, WHICH THE E.M. SAYS IS HORRIBLY BROKEN. IT ALSO CALLS FOR FOCUSING ON MAKING ESSENTIAL SERVICES MUCH BETTER THAN THEY ARE, AND NOW THAT ALL OF THESE PROBLEMS ARE ON THE TABLE, THE NEXT PROCESS WILL BE FINDING THE SOLUTIONS. BACK TO YOU. NO SILVER LINING IN THAT STORY. ALL RIGHT, THANK YOU, BISI. AMONG THE CHALLENGES OUTLINED IN THE REPORT, THE CITY HAS 78,000

Comments

The views expressed below are not those of Click On Detroit, WDIV, or its affiliated companies. By clicking on "Post," you acknowledge that you have read the Terms of Service and your comment is in compliance with such terms. Readers, please help keep this discussion respectful and on topic by flagging comments that are offensive or inappropriate (hover over the commenter's name and you'll see the flag option appear on right side of that line). And remember, respect goes both ways: Tolerance of others' opinions is important in a free discourse. If you're easily offended by strong opinions, you might skip reading comments entirely.